A customs union eliminates internal tariffs and adopts a common external tariff. A common market adds free movement of labor and capital, requiring deeper regulatory harmonization among members.
Customs Union vs Common Market A customs union and a common market are two consecutive stages of economic integration . Both eliminate internal tariffs and adopt a common external tariff, but a common market goes further by adding the free movement of labor and capital. Understanding the distinction is essential for analyzing the trajectory of trade blocs and the depth of regional integration . Key Takeaways Both eliminate internal tariffs and adopt a common external tariff. A common market adds